You began working for a small business owner, and now your contributions to the company's success have allowed it to grow, including the company's revenues and profits.
If you see your presence in the business as key to its success, it may be time to ask for more than a raise. Consider approaching the owner about becoming a partner in the business.
The benefits of being a partner in a business, instead of just an employee, are bountiful but so are the headaches.
Remember, as an owner you would take on profits, but also risk. Lots of things can happen to a business that make it slowly, or suddenly, unprofitable. As an partner, you would assume some of that risk.
Before you think partnership, consider this: Would you mortgage your own house to support the business in tough times? The current owner would.
It's important that you show how you fit the needs of the business. A business that needs a marketing expert won't make a logistics expert a partner, for example.
Don't assume a small business owner is raking in dollars. It's about profits, not just revenue. A company that takes in $2 million in revenue, will likely have a profit that is much less than that. That $2 million must cover overheads, such as rents or leases, insurance, healthcare plans, and salaries. These costs quickly eat up those revenues.
Show that you have a deep understanding of, and appreciation for, the company. Know every aspect of it, and how it runs. From accounting to logistics, understand the company's core operations and develop ideas on ways to improve them.
A Forbes contributor offered very sound advice, saying "step back and think about what would best serve the business overall. Speak from that vantage point. Hold yourself accountable to represent the company's interests (especially when they conflict with your own), and you'll be seen as a real asset to any organizational-level discussion."
You must demonstrate that you are willing and able to share debt, profits, and provide a ownership-worthy contribution. That includes investing your own dollars into the business. That's called taking on risk.
